Profit center responsibility reporting Instructions Labels and Amount Descriptions Divisional Income Statements Supporting Calculations Instructions XSport Sporting Goods Co.oporates two divisions--the Winter Sports Division and the Summer Sports Division. The following income and expanto accounts were provided from the trial balance as of December 31, 2019, the end of the fiscal year, after all adjustments, including those for Inventories, were recorded and posted Sales-Winter Sports Division Sales-Summer Sports Division $10,540,000 13,605,000 6,290,000 7,838,000 1,655,000 1.002.000 Cost of Goods Sold-Winter Sports Division Cost of Goods Sold-Summer Sports Division Sales expense-Winter Sports Division Sales expense-Summer Sports Division Administrative Expense-Winter Sports Division Administrative Expense-Summer Sports Division Advertising Expense Transportation Expense Accounts Receivable Collection Expenso Warehouse Expense 1,009,000 1,205,800 477,300 104,400 120,300 980,000 The bases to be used in allocating expenses, together with other essential information, we as follows Instructions Labels and Amount Descriptions Divisional Income Statements Supporting Calculations Instructions Warehouse Expense 980,000 The bases to be used in allocating expenses, together with other essential information, are as follows: A. Advertising expense---incurred at headquarters, charged back to divisions on the basis of usage: Winter Sports Division, $216,200; Summer Sports Division, S261,100 B. Transportation expense-charged back to divisions at a charge rate of $6 per bill of lading: Winter Sports Division, 12,300 bills of lading: Summer Sports Division, 15,100 bills of lading. C. Accounts receivable collection expense--incurred at headquarters, charged back to divisions at a charge rate of $5 per invoice: Winter Sports Division, 9,650 sales invoices; Summer Sports Division, 14,410 sales invoices. D. Warehouse expense-charged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 94,000 square feet; Summer Sports Division, 102,000 square foot. Required: 1. Prepare a divisional Income statement with two column headings: Winter Sports Division and Summer Sports Division. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. (Complete the Supporting Calculations tab first.) A colon () wil in where needed. 2. Provide supporting calculations for service department charges. eck My Work Divisional Income Statements Xsport 500 trig Goods Co. Divisional Income Statements For the Year Ended December 31, 2019 Winter Sports Division Summer Sports Division 2 3 4 Label) 6 7 9 10 Label 11 12 15 Divisional Income Statements Supporting Calculations Service Department Charges Winter Sports Division Summer Sports Division Total 5 Advertising expense $ $ Transportation rate per bill of lading $ $ 7 Number of bills of lading Transportation expense $ $ 20 Accounts receivable collection rate Number of sales invoices 11 12 Accounts receivable collection expense $ 13 Warehouse rate per sq. ft. $ 14 Number of square feet 15 Warehouse expense 10
